Materials Requirement Planning (MRP) Systems Are Used Primarily To

question 48

Multiple Choice

Materials requirement planning (MRP) systems are used primarily to:

• A)Plan orders.
• B)Plan lead time.
• C)Plan amounts of end items to produce.
• D)Plan distribution.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into an equivalent number of fully completed units to accurately measure inventory and cost of goods sold.

Weighted-Average Method

A method of costing inventory that determines the cost of goods sold and the closing inventory by averaging the cost of all items available for sale throughout the period.

Ending Inventory

The worth of merchandise on hand for purchase at the conclusion of a financial period.

Equivalent Units

Equivalent units are a calculation in process costing that converts partially completed units into a number of equivalent fully completed units.